The first-ever Bitcoin-based exchange-traded fund (ETF) to ever launch in the North American continent stands as the Purpose Investments ETF. That same ETF has managed to grow to $1.1 billion in Assets Under Management within the span of under two months since its launch. Shortly after Purpose’s launch, two other Bitcoin ETFs followed, and both of these ETFs now sport a combined AUM of $200 million within that same time frame. With this, Canada boasts a total of $1.3 billion in net assets under management for its BTC ETF markets.
Purpose Playing Crypto Pioneer
It was back in late February when the Purpose Bitcoin ETF launched, managing to generate $100 million in trade volumes within the first day of trading Over $500 million in AUM was accrued by that same ETF within the first week thanks to investors toppling over each other to try and get a piece of Bitcoin exposure without actually owning Bitcoin.
Just a few days after the world's first #Bitcoin ETF started trading, its holdings are at 8,288 BTC – 2,251 were added yesterday alone.
The ETF's AUM has crossed half a billion USD, currently sitting at $564M.
Charts: https://t.co/gupWslpJDR pic.twitter.com/FMMFSDZJ7Z
— glassnode (@glassnode) February 23, 2021
With the regulatory acceptance of the Purpose ETF and its eventual launch, the floodgates were opened for Canada’s Bitcoin businesses. Within the span of a few weeks, two more ETFs saw themselves be launched. It was a gold rush for Bitcoin ETF products.
Early Bird Catches The Worm
Purpose’s Bitcoin ETF stands as a prime example of what a first-mover advantage can do for you. The lion’s share of Canada’s Bitcoin ETF industry is still dominated by that one fund, but the market is starting to get crowded. Another Bitcoin ETF started operations just two days after Purpose, made by Evolve Fund Group. The ETF managed to gain around $105 million in AUM already, and this is with a 25% lower management fee when compared to Purpose.
Another ETF that launched just a few days after, the CI Galaxy Bitcoin ETF, stands at around $90 million in AUM already. This time, the ETF slashes the management fees all the way down to 0.4%. This information comes from Globe and Mail, a Canadian news outlet. Now, it should be noted that these Bitcoin ETFs are all rising in value in tandem with Bitcoin’s own meteoric price rise. Each unit of each ETF is now valued higher than it was when it originally launched.
US Lagging Behind
With Canada’s ETF market flourishing, it should be no surprise that the US is trying to get in on that action. An array of US-based firms have already registered applications with the US Securities and Exchange Commission in order to launch their own Bitcoin ETFs. However, no ETF within US soil has managed to gain the approval it needs to begin operation. It’s a shame, but it seems that the US is starting to lag behind when it comes to the crypto space and the innovations therein.